Publicly-Funded Digital R&D Investments and the Regional Advertised Demand for Advanced Digital Skills in Great Britain

Abstract

This paper assesses whether regional publicly-funded research and development (R&D), including digital R&D investment, is associated with advanced digital skills demand and digital patenting. We use UKRI project information, Lightcast online vacancies and Orbis IP patents. Multilevel structural equation models are estimated to distinguish changes within UK sub-regional areas from persistent differences. Within regions, only active digital projects are positively associated with subsequent skill demand, without indirect relationships. Between regions, all active R&D measures are positively associated with advanced digital skill demand and indirectly with patenting, although significance varies. Overall, findings indicate persistent geographical differences rather than within-region funding-skills-patenting sequences. Joint paper with Pei-Yu Yuan, Ming-Wei Hsu and Philip McCann.